CHICAGO, IL, Aug. 18, 2015 -- Envestnet, Inc. (NYSE: ENV) today announced plans to make NextShares™ exchange-traded managed funds available to financial advisors through the Envestnet wealth management platform as part of its advisor-as-portfolio-manager tools as well as through Fund Strategist Portfolios (FSPs).
"Further expanding our FSP platform to include NextShares funds is a great demonstration of what we consider to be our central mission—helping financial advisors deliver high-quality, personalized, and holistic wealth management services in the most cost- and tax-efficient way possible," said Jim Patrick, Executive Vice President of Envestnet | PMC®. "As of June 30, 2015, our network services over 41,000 advisors, almost 3 million investor accounts, and over $700 billion in total client assets. We are delighted to play a role in supporting this groundbreaking fund structure."
Envestnet model management tools provide financial advisors with a flexible framework for portfolio construction based on client risk tolerances, including asset allocation, product selection, implementation, monitoring, and rebalancing across multiple investor accounts. Envestnet is working with Navigate Fund Solutions LLC (Navigate) to integrate NextShares into Envestnet's platforms, technology systems, and processes. This will allow for the inclusion of NextShares funds in Envestnet's portfolio model management tools.
"NextShares are a new type of actively managed fund that includes the structural advantages of exchange-traded funds," said Stephen W. Clarke, President of Navigate. "We are pleased to partner with Envestnet to incorporate NextShares into its portfolio model management tools, which further demonstrates its commitment to innovation."
Envestnet, Inc. (NYSE: ENV) is a leading provider of unified wealth management technology and services to investment advisors. Our open-architecture platforms unify and fortify the wealth management process, delivering unparalleled flexibility, accuracy, performance, and value. Envestnet solutions enable the transformation of wealth management into a transparent, independent, objective, and fully-aligned standard of care, and empower advisors to deliver better outcomes.
Envestnet's Advisor Suite® software empowers financial advisors to better manage client outcomes and strengthen their practices. Envestnet provides institutional-quality research and advanced portfolio solutions through our Portfolio Management Consultants group, Envestnet | PMC®. Envestnet | Tamarac provides leading rebalancing, reporting, and practice management software.
Envestnet and Navigate Fund Solutions LLC are unaffiliated. Envestnet does not offer or sell securities for distribution.
This press release is for informational purposes only and is not intended to constitute, and should not be construed as, an offer to sell securities. The launch of NextShares is conditional upon fund regulatory approval, the likelihood and timing of which cannot be predicted. Commercial success also requires completion of enabling implementation technology and acceptance by market participants, which cannot be assured. Like mutual funds, NextShares will not offer investors the opportunity to buy and sell intraday based on current (versus end-of-day) determinations of fund value. NextShares trade execution prices will fluctuate based on changes in NAV and may vary significantly from anticipated levels during periods of market volatility. Although limit orders may be used to control trading costs, they cannot be used to control or limit trade execution prices. There can be no guarantee that an active trading market for NextShares will develop or be maintained, or that their listing will continue unchanged. Buying and selling NextShares may require payment of brokerage commissions and expose transacting shareholders to other trading costs. Market trading prices of NextShares may be above, at or below NAV, will fluctuate in relation to NAV based on supply and demand in the market for shares and other factors, and may vary significantly from NAV. The return on a shareholder's NextShares investment will be reduced if the shareholder sells shares at a greater discount or narrower premium to NAV than he or she acquired the shares. The performance of actively managed NextShares will depend in part on the portfolio managers' successful application of analytical skill and investment judgment. A NextShares fund is not a complete investment program, and there is no guarantee that it will achieve its investment objective. It is possible to lose money on an investment in NextShares. Investors in NextShares should have a long-term investment perspective and be able to tolerate potentially sharp declines in value. An investment in NextShares is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, entity or person.